Kohl Promises Close Watch on Ticketmaster, Live Nation Deal

The chairman of the Senate Antitrust, Competition Policy and Consumer Rights Subcommittee vows to keep a keen eye on the proposed Department of Justice settlement allowing Ticketmaster to merge with Live Nation.

Sen. Herb Kohl, chairman of the Senate Antitrust, Competition Policy and
Consumer Rights Subcommittee, has said his panel will keep a close watch to
ensure compliance with the $2.5 billion merger deal Ticketmaster and Live
Nation cut with the Department of Justice.

The DOJ Jan. 25 said it "will require Ticketmaster Entertainment Inc. to
license its ticketing software, divest ticketing assets and subject itself to
anti-retaliation provisions in order to proceed with its merger with Live
Nation Inc. ... The proposed settlement will protect competition for primary
ticketing, which will in turn maintain incentives for innovation and
discounting. ... The merger, as originally proposed, would have substantially
lessened competition for primary ticketing in the United
States, resulting in higher prices and less
innovation for consumers."

"Our investigation into the Ticketmaster/Live Nation merger led us to
serious concerns about whether the deal would mean higher prices for concert
tickets and effectively shut out concert promotion and ticketing competitors,"
Kohl said in a Jan. 26 statement. "While we still have those concerns, we
are hopeful that the Justice Department's conditions on the merger will achieve
our goal of preserving genuine competition, and we'll stay involved to make
sure that the Justice Department strictly enforces their terms of this
settlement to ensure that consumers truly benefit."

According to the DOJ:

"Under the proposed settlement,
Ticketmaster must license ticket software and divest ticketing assets to two
different companies-Anschutz Entertainment Group (AEG) and either Comcast-Spectacor or another
buyer suitable to the department, respectively-allowing both companies to
compete head-to-head with Ticketmaster. Ticketmaster will also subject itself
to court-ordered restrictions on its behavior."

The DOJ statement added:

"Ticketmaster must divest itself
of Paciolan Inc., a ticketing company that it currently owns, within 60 days to
either Comcast-Spectacor, which has already signed a letter of intent to
purchase the assets, or some other buyer suitable to the department.
Comcast-Spectacor is a sports and entertainment company with management
relationships with a number of concert venues and ticketing experience with its
New Era Tickets company.
Paciolan is used by hundreds of venues to sell tickets
including major concert venues around the country. Venues that contract with
Paciolan have greater flexibility to lower the ticket service fees that are
charged to consumers who buy tickets. The DOJ said that divesting Paciolan to
Comcast-Spectacor, or another suitable buyer, in conjunction with the AEG license, will replace the competitive
pressure on Ticketmaster lost as a result of the merger."

"The Department of Justice's proposed remedy promotes robust
competition for primary ticketing services and preserves incentives for
competitors to innovate and discount, which will benefit consumers," said
Christine Varney, assistant attorney general in charge of the DOJ's Antitrust
Division. "The proposed settlement allows for strong competitors to
Ticketmaster, allowing concert venues to have more and better choices for their
ticketing needs, and provides for anti-retaliation provisions, which will keep
the merged company in check."